Angered by high prices and shortages, hospitals will form their own generic drug maker

Rising drug prices are drawing increased attention, including a congressional investigation into the hike from 5.6 cents to $3.65 a pill for an antibiotic called doxycycline hyclate.Rich Pedroncelli/AP

ngered by rising prices and persistent shortages of generic drugs, four of the nation’s largest hospital systems are forming a new, not-for-profit manufacturer.

The new company plans to either directly make or subcontract manufacturing to combat “capricious and unfair pricing practices” that are damaging the generic drug market and hurting consumers, according to a statement from the four hospital groups — Intermountain Healthcare, Ascension, SSM Health, and Trinity Health, which together run more than 300 hospitals.

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Wow! The thought of a nonprofit drug manufacturer competing with the for-profit exploiters is really exciting. You should have a tremendous marketing advantage because there will be so much free publicity that you won’t have to spend money on advertising.